The state of Washington released a draft linkage agreement with California and the Canadian province of Québec on Tuesday to connect their carbon emissions trading markets.
What happened: The unsigned draft agreement, published by the Washington Department of Ecology with the seals of California and Québec, launches a multijurisdictional process for the Northwest state to join the California-Québec emissions trading market, the third-largest in the world and the largest in North America.
The draft agreement lays out the logistics of combining the markets, from holding joint auctions to harmonizing rules for offsets, which are credits businesses can use to lower their pollution.
Why this matters: The release of the draft agreement marks a significant first formal step since the three governments last jointly expressed interest in linking in September 2024.
